U.S. Dollar Rises On Trump's Tax Plan

The U.S. dollar has strengthened against their major counterparts in the late Asian session on Friday, after the President Donald Trump announced that he would release his 'phenomenal' tax plan in coming weeks.

Trump, while meeting airline executives, said his administration will be announcing something phenomenal in terms of tax over the next two or three weeks. Since his taking office, investors have been waiting for his election campaign promise of infrastructure spending and tax cuts to stimulate economic growth.

Meanwhile, Trump is likely to go to the Supreme Court for his immigration ban after a San Francisco-based appeals court upheld a suspension of the order.

Traders also await Japanese Prime Minister Shinzo Abe's meeting with Trump later in the day in Washington, D.C.

In the late Asian trading, the U.S. dollar rose to nearly a 2-week high of 1.0024 against the Swiss franc and a 9-day high of 113.80 against the yen, from yesterday's closing quotes of 1.0016 and 113.23, respectively. If the buck extends its uptrend, it is likely to find resistance around 1.02 against the franc and 116.00 against the yen.

Against the pound, the greenback edged up to 1.2497 from an early low of 1.2521. This may be compared to an early 2-day high of 1.2488. The greenback may test resistance around the 1.23 region.

Against the euro, the greenback edged up to 1.0650 from an early low of 1.0668. The greenback is likely to find resistance around the 1.050 area.

Looking ahead, U.K. industrial production, trade balance and construction output - all for December, are due to be released at 4:30 am ET.

At 4:50 am ET, ECB Board Member Yves Mersch will give a presentation at Expertentag of Stiftung Marktwirtschaft in Hamburg, Germany.

At 5:00 am ET, Bundesbank President Jens Weidmann will give a speech at a leadership handing-over ceremony at Bundesbank's Hamburg branch.

In the New York session, Canada jobs data for January, U.S. import price index for January, U.S. University of Michigan's preliminary consumer sentiment index for February are slated for release.

At 2:00 pm ET, U.S. federal budget balance report is set to be published.

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